Posted by
pepe77
12 yrs ago
Hi all
First of all - I dont mean this thread to become another thread discussing property vs stocks, or to discuss property price development in general; we have other threads for that :o)
I am considering different options in terms of investment. One of them is to invest in property and rent out.
Price target: 2,5-3 mil. HKD
Where would - in your opinion - be good places to invest when considering future perspectives, current prices, rental yield etc.
My own thoughts goes towards places like:
Sheung Shui (close to border)
Sheung Wan (old, small, always popular)
Yau Ma Tei/Olympic (developing area)
Kwun Tong (future business district)
I know the amount is small....and that it will be a small apartment no matter what.
Any suggestions or comments to where you would place your money if you should buy an apartment for investment purpose in this price range ?
Thanks...
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Well, not every one can freely chose a higher price range to invest in :o)
Apart from that; I get your point.
However, if the size of apartment is 400-500 Sq ft and location is Kowloon / HK Island I am sure the potential tenants are not only as you describe. This should also cater for single expats without housing allowance etc.
Btw, competence is not a necessity to reply to this thread
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Why not look at Tung Chung?
You can actually buy something decent for that price, and rent to people working at the airport.
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That's not true.
I sold over half a dozen flats in Tung Chung over the last 2-3 years, and it is pretty straightforward. She must be asking too much, or there is something wrong with her flat.
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Just 1 remaining. We sold at a profit, but sold too soon
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I agree with Walkup's first post but if I had to invest in that range I would pick YOHO Town in Yuen Long. It is the best quality and largest developments in the NT and is easier to trade. I used to own there but - like Walkup said - the tenants were pretty ropey. If it were a question of investing (and not buying a flat to live in), I would buy blue-chip property stocks instead (Henderson Land, Sun Hung Kai, Cheung Kong, Hysan) which now look cheap and pay good dividends.
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Walkup - I thought the maximum LTV ratio for investment property was 50%? Has it changed to 40%?
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Hi everybody,
Am a long time followe of this forum but haven't posted yet. I constantly scout the market for opportunities that have the lowest risk, whether in an upturn or downturn. We all look for relatively attractive investments. I would perhaps not be as well informed as you on certain areas in Hong Kong, but one of my investment criteria was within 2 mins walk to an MTR station + has a clubhouse/ facilities + as cheap psf as possible. I am personally invested in this development (2 units). It's in at about $3300 psf currently majority 1/2 bed units. Anybody knows of an area that may be cheaper and perhaps the yield on them??
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Sorry forgot to mention this development is in Siu Hong station, Parkland Villas.
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Walk-up says:
"There are apartments available for sale at under 2 million HKD in Yau Ma Tei."
Hey, Walk-up, have you ever wandered around Tai Kok Tsui? Any thoughts on the opportunities there?
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What do all of you reckon on DB? Not the $8m + units, any views on the $2-4m units? I personally think due to the inconvenience, and cost of transport that the smaller flats usually suitable for a single/ couple (no kids) will not outperform the rest of the districts. Any chance of DB playing a catch-up?
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I don't think DB will play catch up. It suits some HK residents but not the vast majority. It is inconvenient and the management company has you over a barrel concerning maintenance, facilities and the ferry. Would avoid unless you are an expat that doesn't really want to be in HK. Having said that, I think 'the Greens' may offer some value as they are cheap and have quite good views. Depends on your lifestyle and expectations and whether or not you intend to trade up elsewhere in HK.
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Tai Kok Tsui.
I stopped by to speak with two property agents last night. They both have a range of supply at below HK$2 milllion in 30-35 year old buildings. The typical prive might be: HK$1.7-1.8 million for 380-400 sf. That's about HK$4,500 psf.
Apparently, these places can be rented out for about HK$8 - 8,500 - and that would provide a Gross Yield of about 5.65%.
If you choose well and negotiate well, you can probably make money since TKT is an improving area, benefitting from the new high rises springing up there, and also from the excellent transport connections, and an under 10 minute, 2-stop journey into Central. I think that the opening of the Express to China will also help.
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TKT:
I should add a clarification:
In today's SCMP, on Wednesday's they report certain benchmark prices.
So for Tai Kok Tsui district, they report:
Cosmopolitan Estate
Age: 36-38 years
Area: 480 sf
Price: HK$1.72 million
PSF : HK$3,583
That's much cheaper than the flats mentioned to me last night (near HK$4,500). Perhaps I was seeing the "asked side" of prices, or perhaps Cosmopolitan Estate is below the average of the area.
I want to look into this more closely, since my partner's relative might consider looking, or even buying in the area.
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a nearly 40 year old building in this price point is not going to be a pretty picture. Until recently, there were very few private residences in that area. It is possible these are old public housing from lower income families. Other downsides, most banks have formulas for age of building taken into account for mortgages, so a larger downpayment is required. Also, if the wiring hasnt been updated in these buildings, they often cause tons of problems in my experience. Air flow is often terrible in them as well, causing mold.
As a general rule of thumb, I wont purchase something greater than 25 years old (for investment purposes). 5-15 is preferred, and 15-25 if its a great deal.
Some exceptions I can think of off the top of my head are old walkups in central, or those really nice old flats in CWB near victoria park that are above 40 years, but these cater to expats or affluent people, so they tend to be much better cared for and renovated.
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Cosmopolitan Estates - on Ivy St in Tai Kok Tsui is not too bad.
Here's a photo: http://tinyurl.com/AX-cosmo-00
Maybe a year ago or so, it was Rehabilitated by the URA, and many flats within the building are now being renovated.
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Have you considered Castle Peak road (Gold Coast area) N.T? Around 3 million can still buy 700sq/ft in a building under 20 years old, and with the Harrow International School being built it might be worth considering.
I think 3 million might be enough to buy the entire Sea Ranch... lol
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"There are plenty of cheap village houses in the N.T., but it takes ages to go there."
LOL.
Not if you live there
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It rather depends on WHERE you work - Not everyon works in Central !
Shopping is available all over HK
(Some EXpats are far too parochial, which is my main point.)
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"There are plenty of isolated villages with NO shop whatsoever, and where you need WELL OVER 30 minutes to go to a shop and return to your home."
That's true.
We were visiting one of those villages recently. We had just view a property, maybe an hour or so before sundown, and I was starting to get hungry. As we walked out of the viewing, we looked next door.
We watched as an old woman, obviously a longterm resident of the village, bent over a plant in her garden. As we watched, she extracted a huge white turnip. She smiled at us, tucked it under her arm, and head back towards her house - Dinner problem SOLVED !
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Shau Kei Wan?
Whatta great place, if you want to repair and old computer, or buy a part salvaged from a scrapped ship
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We haven't purchased anything for over two years - we just found it hard to see the value with the yields so low. We didn't sell anything either.
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"My wife just suggested we buy another flat for investment, but it seems a very bad time to me."
When it seems "easy and natural" to invest, and prices are also baging up to new highs, it may be a good time to start listening to contrarian arguments.
I think if you invest now, you might want to at least have an argument why your investing idea can outperform the market. For instance, if it is likely to benefit from new transport infrastructure and you can demonstrate that the improvements have not yet been "priced in."
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